AST BlackRock Value Portfolio - Prudential Annuities

in domestic high-yield corporate bonds and, to a lesser extent, in bank loans and preferred and convertible securities. In so doing,
Pyramis will focus its attention on areas of the market where it believes its resources have the greatest competitive advantage and
can add the most value. As a result, Pyramis will emphasize sector valuation and individual security selection in constructing this
segment of the Portfolio, and focus on the less efficient, middle-tier section of the high-yield market while selectively investing in
lower rated issuers. The high-yield bond segment of the Portfolio is designed to be well diversified across sectors, capital structure,
and issuers.
8. Liquidity Strategy. Typically up 10% of the Portfolio’s net assets may be allocated to: index futures, other futures contracts, and
options thereon to provide liquid exposure to their respective equity and fixed-income benchmark indices as well as cash, money
market equivalents, short-term debt instruments, money market funds, and short-term debt funds to satisfy all applicable margin
requirements for the futures contracts and to provide additional portfolio liquidity to satisfy large-scale redemptions and any
variation margin calls with respect to the futures contracts. The Portfolio may also invest in ETFs for additional exposure to
relevant markets.
Under normal circumstances, the assets of the Portfolio are allocated across the domestic equity, international equity and
fixed-income asset classes as set forth below:
Percentage of Assets Allocated to Domestic Equities—50% (Approximate Range of 40-60%)
Percentage of Assets Allocated to Foreign Equities—20% (Approximate Range of 10-30%)
Percentage of Assets Allocated to Domestic & Foreign Fixed-Income Securities—30% (Approximate Range of 20-40%)
AST FIRST TRUST BALANCED TARGET PORTFOLIO
Investment Objective: long-term capital growth balanced by current income.
AST FIRST TRUST CAPITAL APPRECIATION TARGET PORTFOLIO
Investment Objective: long-term capital growth.
Principal Investment Policies:
General. Each First Trust Portfolio allocates its assets across various uniquely specialized investment strategies. Initially, each First
Trust Portfolio invested in the securities determined by the model based on its respective investment strategies. On or about the
annual security selection date (March 1), each First Trust Portfolio establishes both percentage allocations among the various
investment strategies and the percentage allocation of each security’s position within the investment strategies that invest primarily
in equity securities (each, an Equity Strategy and collectively, the Equity Strategies). First Trust reserves the right to over-weight,
underweight, or exclude certain companies from the holdings of either First Trust Portfolio. The approximate percentage
allocations among the various investment strategies at the annual security selection date are as follows:
Investment Strategy
Approximate Allocation for
Balanced Portfolio
Approximate Allocation for
Capital Appreciation Portfolio
Equity
NYSE® International Target 25 10% 10%
Global Dividend Target 15 15% 20%
Value Line® Target 25 15% 20%
Target Small-Cap 5% 5%
The Dow® Target Dividend 10% 0%
Nasdaq Target 15 0% 15%
Multi-Cap 80 10% 10%
Total Equity 65% 80%
Fixed-Income
Dow Jones Income 28% - 35% 16% - 20%
U.S. Treasuries 0% - 3.5% 0% - 2%
Senior Loans 0% - 3.5% 0% - 2%
Total Fixed-Income 35% 20%
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